Babcock & Wilcox Enterprises Inc. will do a one-for-10 reverse stock split on its shares later this month that will help it regain New York Stock Exchange minimum listing requirements.
The Barberton manufacturer on Thursday said its board approved the split after stockholders at the June 14 annual shareholders meeting also approved a reverse split.
The reverse stock split is expected to become effective after the market closes on July 23 following the completion of a previously announced rights offering. The trading symbol will remain BW.
Shares on Thursday closed at 31 cents, down 2 cents. Over the past 52 weeks shares have traded from a low of 19.4 cents to a high of $2.42.
Every 10 shares of the company’s will be converted into one share of common stock. No fractional shares will be issued.
The action means the number of outstanding shares will be reduced by a factor of 10.
“This reverse stock split is another key step in B&W’s turnaround efforts and reflects the importance we place in remaining a listed company on the New York Stock Exchange,” Kenneth Young, B&W chief executive officer, said in a news release. “We look forward to providing more information about our continuing progress when we release the company’s second quarter 2019 financial results.”